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SINGAPORE — Ex-HUDC estate Ivory Heights is moving to catch the wave of collective sales, with homeowners eyeing a reserve price of S$1.34 billion for the 825,502 sqft site.

More than 8 in 10 owners at the second extraordinary general meeting on Oct 1 voted to sell, said marketing agent SLP International Property Consultants on Monday (Oct 9).

Collective sale committee vice-chairman Richard Hui said it is likely that the required 80 per cent support of subsidiary proprietors for the collective sale will be secured “fairly quickly”.

The Jurong East St 13 property is among several developments eyeing a reserve price above the S$1 billion mark in recent months. Owners of Singapore’s largest privatised HUDC estate, Braddell View, were reportedly seeking a collective price over S$2 billion in September.

Analysts were not surprised at Ivory Heights’ steep asking price, given the property’s large land area and its prime location near Jurong East MRT station and the future Kuala Lumpur-Singapore High Speed Rail terminus.

The estate comprises 654 housing units ranging from 1,668 sq ft to 1,948 sq ft. The 99-year leasehold property was built in the 1980s.

The price homeowners are seeking reflects a land rate of about S$979 psf per plot ratio, based on the existing built-up area with equivalent plot ratio of 1.86. The rate includes an estimated differential premium of S$160 million to top up the lease to 99 years.

According to the 2014 Urban Redevelopment Authority Master Plan, the site’s gross plot ratio is 1.6.

Analysts expect high interest from developers, pointing to the hunger for large sites in recent months.

“Developers are keen because securing a large site would mean that they would be able to maximise the land by building more units, and hopefully profit from it,” said Mr Chris Koh of Chris International. Bidders would likely need deep pockets and developers could form consortia to submit bids, he said.

The 702,164 sqft Tampines Court was sold in August for S$970 million and the 660,999sq ft Normanton Park was sold last week for S$830.1 million.

"With few residential property launches in the Jurong East precinct, the last being J Gateway in 2013, there is probably limited supply of new private residential units in the area," said Mr Wong Xian Yang, Assistant Director Research & Consultancy at OrangeTee. "There may be pent up demand for new launches in the area given the growth prospects of the Jurong Lake District," he said.

Analysts were optimistic that the 80 per cent threshold would be met quickly.

Said International Property Advisor chief executive Ku Swee Yong: “The older residents may not be as willing to uproot and move out but if there is a good payout that will allow them to retain cash for retirement as well as downsize to a more manageable home, I don’t see why they will resist.” There is also a sizeable group of owners – perhaps 30 per cent – who own the property as an investment, he said.

Ivory Heights guns for $1.3b as it seeks sale approval

Ivory Heights guns for $1.3b as it seeks sale approval

Oct 10, 2017

Annabeth Leow

Privatised HUDC estate Ivory Heights may soon go on the market after winning initial backing for a collective sale.

The sale committee is making a push to secure backing from the required 80 per cent of home owners, with a whopping $1.34 billion price in its sights. This would match the record overall price paid for Farrer Court in 2007, and would work out to about $979 per sq ft per plot ratio, based on the 825,502 sq ft land area.

Owners could each pocket more than $2 million, said marketing agent SLP International. Flats in the estate have sold for between $1.248 million and $1.31 million this year.

The winning bidder would also have to cough up an estimated $160 million to top up the 99-year lease on the 654-unit estate, built in 1986.

Mr Richard Hui, vice-chairman of the collective sale committee, told The Straits Times: "As the estate ages, the land will depreciate, so 69 years is a very nice moment for developers to come in."

He pointed to its plum spot in the Jurong Lake District, which will be turned into Singapore's second Central Business District, saying: "I am sure a lot of big developers want the land for a development in our area."

There has been a flurry of collective sale interest at former HUDC estates, kicked off by Rio Casa in May. Five have been sold this year, with the biggest deal at Tampines Court, which went for $970 million in August.

Meanwhile, owners at other developments are not sitting idle. Florence Regency is now weighing bids after asking for $600 million.

Pine Grove owners, who have yet to kick-start the tender process, are hoping for $1.65 billion, and those at Braddell View will meet today to form a collective sale committee with a target price of over $2 billion.

But perhaps not all former Housing and Urban Development Company estates will hit the jackpot so quickly.

Mr Tan Hong Boon, JLL regional director of investments, said: "The ones who come in later will ask for higher and higher prices, and developers will not be willing to pay."

IVORY Heights, a privatised HUDC estate at Jurong East, will be joining the enbloc sales bandwagon, after more than 80 per cent of its owners present at the second extraordinary general meeting last week voted in support of the sale proceeds apportionment method and collective sale agreement.

The next thing to do would be to garner support for the collective sale, which also requires a 80-per-cent consent from residents.

The reserve price of Ivory Heights is about S$1.34 billion, or S$979 per square foot per plot ratio based on the existing built-up area and plot ratio of 1.86. This includes an estimated differential premium of S$160 million to top up the lease to 99 years.

Ivory Heights is a HUDC development built in the 1980s with a land area of 825,502 sq ft. It comprises three high-rise tower blocks and five blocks of low-rise four-storey walk-up maisonette apartments. The estate has 654 housing units in total, ranging from 1,668 sq ft to 1,948 sq ft. According to the URA Master Plan 2014, the site is zoned for residential use with a gross plot ratio of 1.6.

Ivory Heights is located near Jurong East MRT station, Chinese Garden MRT and the future High Speed Rail terminus. The site offers unblocked views of Jurong Lake, Chinese Garden and Japanese Garden. SLP International Property Consultants is the sole marketing agent for the deal.